Who has the power? Is it the Office of the Regulator or the Cabinet that sets the new fees for the use of SpaceX Starlink internet?

More than a week ago, the Regulator announced new fees for people already using Starlink. Then last week it was revealed that the Cabinet did not approve the new charges. The new charges have already been given the green light by the Revenue Board and a paper has been submitted to the Cabinet.

However, the paper is yet to be discussed and approved.

The Minister of Finance, Lautimuia Uelese Vaai said he has not been made aware of the new charges nor has the Cabinet approved it.

“I haven’t received any information from the Revenue Board on those fees from the Regulator and should never be implemented without Cabinet approval, Lautimuia said.

“Once fees are approved by the Revenue Board, a FK (Cabinet Paper) is prepared for the Minister of Finance to table it in Cabinet.

“Any new revenue or any new recovery costs or non-tax revenue proposed by any government Ministry cannot be implemented without the endorsement from Cabinet.”

Similarly, if any government Ministry intends to charge fees for the public, it has to go through the Revenue Board and the final approval comes from Cabinet, the Minister added.

The Office of the Regulator is no longer independent of the government. It used to be but all that changed under the previous administration. Does that mean that due process was not followed?

If that is the case then the charges have to be approved by the Cabinet first before it can be passed on. According to the Minister of Finance, this has not happened.

The question is not of the charges or if consultations were held, it is about following the correct process in mandating something legally. If the correct process was not followed, does this mean that new charges are not legal?

The Office of the Regulator is trying its best to level the playing field. There are two already established telecommunication service providers who have spent millions in setting up infrastructure and continue to spend millions in operating that infrastructure.

It would be unfair for the Regulator to allow Starlink to operate in the country if they did not go through the same process that the two telecommunication providers have. Since there was no existing law preventing people from bringing the Starlink kits, many people and businesses have.

To remedy this ‘illegal’ usage, the Office of the Regulator was forced to set up guidelines for use of the existing kits in the country and ban the importation of any further kits until Starlink is given a proper license.

In doing so, charges had to be set for the use of the device that provides faster and cheaper internet, according its users. Unlike neighbouring Fiji, internet prices are very low, so Starlink does not dent much of the market, instead what it does is provide people in remote rural areas and out in the maritime zones access to the internet, some areas do not have coverage.

The story in Samoa is slightly different. Internet prices are steep because of the cost to the providers. The companies pay a high rate for the connection and then they deal with the high electricity prices. One of the telcos has already pulled out of a major sponsorship deal because of the costs. This could be a sign of things to come if the communication industry is not regulated well and a fair playing field established for the companies and the consumers.

But for all this to happen due process has to be followed. Starlink has to follow due process to operate out of Samoa and pay all the fees required under the law as the other companies do. The Office of the Regulator also has to follow the due process when charging the prices.

This is important because if the procedures are listed as such, they must be followed, otherwise, it renders all guidelines and processes ineffective and redundant. There are processes for procurement, tenders, police work, hospitals and all government departments.

They are established to ensure transparency and accountability. That is what the public needs as much as they need their internet.